Chapter 5: Project Management

Project

refers to fixed-term activities that are initiated irregularly in order to produce or provide a unique product or service.

Project Management

refers to the management (i.e., control and administration) carried out in order to lead a project to its success

(QCD)

• Quality

• Cost

• Delivery

What are the constraints of a project?

(UTRS)

• Uniqueness

• Temporariness

• Resource finiteness

• Stepwise refinement

What are the characteristics of a project?

Project Environment

This is the internal environment factors and external environment factors encompassing the project that may impact the success of the project.

Stakeholder

This is an organization or individual having interests in the activities of the project.

(PIIA)

• predictive type

• iterative type

• incremental type

• adaptive type

What are the types of project lifecycles

(FMP)

• Functional Organization

• Matrix Organization

• Projectized Organization

3 types of Project-Based Organization

Project Management Office (PMO)

This is a department or group that supports (or performs direct management of) project management by performing consolidated management or coordination of several projects.

PMBOK (Project Management Body of Knowledge)

This is a guide to the body of knowledge concerning project management that is issued by PMI (Project Management Institute)

ISO 21500

This is a comprehensive guideline on project management that is published by the ISO (International Organization for Standardization).

(IPECC)

1. Initiating

2. Planning

3. Executing/Implementing

4. Controlling

5. Closing

What are the five process groups according to the flow of the project life cycle?

Project Charter

It is a document that declares the initiation of a project that is formally approved by the organization.

project scope management

The purpose of ___ is to clarify of the activities necessary for the execution of the project without any deficiencies or excess, and to control them in order to make the project a success

Scope

It refers to the deliverables and the scope of work for obtaining the deliverables.

Scope Management Plan

It describes the methods for performing scope definition, validation check, and control on the basis of the requirements that is described in the project charter, and the project management plan and the subsidiary plans

Requirements management plan

It describes the methods for performing analysis and documentation of the requirements.

Scope creep

These are the changes/expansion made to the scope without performing control. This often happens when additional features, requirements, or deliverables are added without proper approval or adjustments to the project's schedule, budget, or resources

• Deliverable scope description

• project deliverables and acceptance criteria

• items excluded from the project

• project pre-requisites and constraints

What are the descriptions included in a project scope statement?

WBS (Work Breakdown Structure)

is a hierarchical structure diagram in which the activities necessary for achieving the purpose of the project are divided in a stepwise fashion with the deliverables as the main constituent.

Work package

On the basis of the project scope statement, the project deliverables are subdivided (or decomposed) into the ___, which is the lowest component

Scope baseline

The result of WBS creation is documented as the ___

• Project scope statement

• WBS

• WBS dictionary

Components of a scope baseline

Variance analysis

During monitoring, ___ is performed for the progress information (i.e., performance) of project activities and the scope baseline, and the cause and extent of the difference are checked.

Activity

the unit obtained by further refinement of the work package that is the lowermost hierarchy of WBS

PDM (Precedence Diagramming Method)

It is a technique used in CPM (Critical Path Method) according to which activities are represented through quadrangles and the logical order relation between activities is represented through arrows.

Analogous estimate

This is a technique of relative estimate on the basis of the performance of a similar project in the past

Parametric estimate

This is a technique of estimate in which the past information is statistically analyzed and various coefficients are determined.

Three-point estimate

This is a technique of estimate in which the optimistic value, the pessimistic value, and the mode (average) value are used.

Reserve analysis

This is a technique of estimate in which a reserve (i.e., buffer) is provided beforehand.

PERT (Program Evaluation and Review Technique)

It is a project management tool designed to help plan, schedule, and coordinate tasks/activity within a project, especially when there is uncertainty about the duration of individual activities. This is a technique that makes use of an arrow diagram

CPM (Critical Path Method)

a project management technique used to plan, schedule, and control complex projects by identifying the sequence of tasks that determine the minimum completion time. Same like PERT but is uses predictable task durations and is best for projects where activity times are known.

Resource leveling

This is a resource optimization technique by which the amount of usage of specific resources is maintained at a constant level.

Crashing

A technique in which the schedule is compressed by introducing resources such as staff members and cost

Fast-tracking

A technique in which the schedule is compressed through subdivision/parallel execution of specific activities and by proceeding with the succeeding process in parallel before the completion of the previous process.

Schedule baseline

What do you call the documented result of schedule development?

EVM (Earned Value Management)

This is a technique of quantifying and evaluating the progress of a project and the productivity (i.e., performance) of activities on the basis of the value of the amount of work completed (normally converted to the amount of money).

PV (Planned Value)

A basic indicator of EVM, This is the cost assigned to each activity during planning

EV (Earned Value)

A basic indicator of EVM. This is the cost originally assigned to an activity completed at a recent point in time.

AC (Actual Cost)

A basic indicator of EVM. This is the cost that was actually required for an activity completed at a recent point in time.

SV (Schedule Variance)

A performance indicator of EVM. This is an indicator of the difference as seen from the viewpoint of the schedule of each activity. If it is more than 0, the progress of the project is ahead of the schedule.

SV = EV - PV

What is the formula for SV (Schedule Variance)

SPI (Schedule Performance Index)

A performance indicator of EVM. This is an index of the efficiency as seen from the viewpoint of the schedule of each activity. If it is more than 1, the work efficiency is good; that is, the progress of the project is ahead of schedule.

SPI = EV / PV

What is the formula for SPI (Schedule Performance Index)

CV (Cost Variance)

A performance indicator of productivity. This is an indicator of the difference as seen from the viewpoint of the cost of each activity. If it is more than 0, the productivity is high

CV = EV - AC

What is the formula for CV (Cost Variance)

CPI (Cost Performance Index)

A performance indicator of productivity. This is an index of the efficiency as seen from the viewpoint of the cost of each activity. If it is more than 1, the cost efficiency is good; that is, the productivity is high.

CPI = EV / AC

What is the formula for CPI (Cost Performance Index)

Cost management plan

It describes the performance measurement method, on the basis of the overview of the overall budget that is described in the project charter (budget summary), and on the basis of the project management plan and the subsidiary plans.

• Analogous estimate

• Parametric estimate

• Three-point estimate

• Reserve analysis

What techniques involve cost estimate?

Analogous estimate

In this cost estimate technique, the differences in the work package and activities that are refined stepwise are reflected on the basis of the performance of a similar project in the past.

Integration method

A bottom-up estimate, in which the cost of the work package and activities keeps on adding up.

COCOMO (Constructive Cost Model)

It is a technique of estimating the development cost and the development man-hours by calculating the workload (i.e., development productivity) of the programmers through a statistical model on the basis of the software development size (e.g., the number of program steps). The statistical model includes elements such as the estimation target level (e.g., overview, regular, detailed) and the composition of work force (e.g., single experts group, common group, mixed group).

FP (Function Point) Method

This is a technique of estimating the development cost and the development man-hours with the help of the software functions that are obtained from the number of screens and the number of forms.

LOC (Lines of Code) Method

This is a technique of estimating the development cost and the development man-hours on the basis of the number of lines of the source code of the software to be developed, the file size, and so on.

Standard task method

This is a technique of estimate in which the software development activities are broken down into standard activities, and the points (e.g., the man-hours and the cost) defined in each standard activity are integrated.

Putnum model

This is a model that takes into consideration the time series variation in the development man-hours, and is a technique of estimate in which the development cost and the development man-hours are estimated from the performance data of a past development project.

Quality management plan

It describes the quality policies, quality objectives, and quality plan for securing the quality level. It also includes activities towards continuous process improvements.

QFD (Quality Function Deployment)

This is a technique used to clarify the requirements concerning the products and services, and deploy them in specifications needed to develop the products and services meeting those requirements.

• Pareto chart

• Histogram

• Scatter diagram

• Control chart

• Stratification

• Check sheet

• Cause-and-effect diagram

What are the 7 QC Tools?

Benchmark

This is a technique of identifying the best practice of a project that is being executed (or under planning), or examining an improvement plan by comparing it with a similar plan.

• Affinity diagram

• Association diagram

• Matrix diagram

• Matrix data analysis

• Arrow diagram

• Tree diagram

• PDPC (Process Decision Program Chart)

New 7 QC Tools?

Quality audit

In this technique, a third party investigates and evaluates systematically whether the project conforms to the quality policies, the processes, and the procedures

Process analysis

It examines the problems and contradictions, and worthless activities that occur during the execution of processes, and identifies the improvement plans necessary in the process.

Quality Control

This process monitors, according to the quality management plan, if the quality requirements and quality standards that are defined during quality management planning are achieved.

Risk Management Plan

This process specifies the risk management methods (e.g., techniques and tools) and the risk category in a project

RBS (Risk Breakdown Structure)

In the risk category, a ___ is prepared in which stepwise refinement of risks is performed in order to classify and organize the risks.

Brainstorming

This is a technique to uncover and reveals the project risks by exchanging opinions freely and openly with the project team and external expert groups.

Delphi method

This is a technique to identify (or create an agreement on) the project risks by repeatedly collecting, summarizing, and redistributing the opinions of several experts through questionnaires.

Checklist analysis

The risks are identified by cross-checking against a checklist prepared by compiling together the expected risks on the basis of the information and knowledge accumulated from similar projects in the past.

Monte Carlo method

The risks are identified by performing several simulations or numerical analyses that make use of probability distribution and random numbers.

Assumptions analysis

The risks that occur as a result of inaccurate, incomplete, and unstable assumptions are identified by checking the validation of the assumptions of the project.

Utilization, Sharing, and Enhancement

The response to risks that exert a positive influence includes __

Avoidance, Transfer, and Mitigation.

The response to risks that exert a negative influence includes ___

Project stakeholder management

Its purpose is to clearly identify the stakeholders (i.e., interested parties: individuals, groups, and organizations affected by, or affecting the project) and to perform control so as to build and maintain a favorable relationship with the stakeholders

Salience model

It classifies stakeholders by using three factors: power, urgency, and legitimacy

• Unaware

• Resistant

• Neutral

• Supportive

• Leading

5 levels of stakeholder engagement

Project Resource Management

Its purpose is to clarify of the resources necessary for

achieving the purpose of the project, and to control the resources.

human resource management plan

a subsidiary plan that is composed of “roles and responsibilities,” “project organization chart,” and “staff members management plan” on the basis of the content that is described in the project management plan

Project Procurement Management

Its purpose is to acquire or purchase the resources necessary from outside of the project team for executing the project.

co-sourcing

a form of outsourcing in which the outsourcee and the outsourcer perform their work at equal positions and distribute the profits

Fixed price contract (lump-sum contract)

The supplier provides products and services at a fixed remuneration up to the specified deadline. Since the amount is fixed, there is less risk to the acquirer.

Cost-reimbursable contract

The supplier adds a profit to the cost and charges the acquirer. Since the total cost is not clear at the time of the contract, the risk to the acquirer is high.

Cost plus fixed fee contract

In this type of contract, a fixed profit (i.e., fixed fee) is added to the cost.

Cost plus incentive fee contract

In this type of contract, an incentive that is in response to the objectives accomplishment level is added to the cost.

T&M contract (Time and material contract)

The supplier charges the acquirer an amount obtained by multiplying the actual work time and the amount of resources used with the unit value set for the time and the material. Since the total cost is not clear at the time of the contract, the risk to the acquirer is high.

Project Communications Management

Its purpose is to control the communication with the stakeholders and the communication within the project team by appropriately performing the tasks from generation of information up to its disposal in the project.

Interactive communication (bidirectional communication)

This is a method in which information is exchanged mutually between two or more parties, such as meetings, conversations, and video conferences. Since this results in a feedback loop in which opinions are mutually exchanged, it is also called feedback communication.

Push communication

This is a method of distributing information to specific recipients who need to receive the information.

Pull communication

This is a method of obtaining information at recipients’ discretion from websites on the Internet or the Intranet and from printed materials such as newspapers and magazines. It is used when there are many unspecified recipients or a large amount of information.

• the purpose and validation of the project, objectives and success criteria of the project,

• needs and requirements (requirements concerning the outcome of the project) of stakeholders,

• pre-requisites and constraints concerning the organization and related institutions,

• the overview and scope of the project,

• risks of the project,

• an overview of the overall schedule (i.e., summary milestone schedule),

• approximation of the overall budget (i.e., summary budget),

• responsibilities and authorities of the appointed project managers,

• a list of stakeholders, and the approver and proponent (initiator) of the project charter, and so on.

Descriptions included in the project charter